The global orderbook has continued to decline in the year to date, indicating that there are diminishing levels of activity at many of the world’s shipyards, says Clarksons Research. In the last six months, South Korean yards have seen the largest decline in their orderbooks of the three major shipbuilding nations, reflecting historically weak global ordering, domestic contracting trends elsewhere and varying delivery patterns. In the year to date, the global orderbook has declined by 12%, in CGT terms, to 100.2m CGT, its lowest level since June 2013 (CGT measures the volume of shipyard work required to build a vessel). At 1st July 2016, South Korea’s orderbook stood at 25.1m CGT, 25% of the global total. This is the smallest that Korea’s orderbook has been, in CGT terms, since January 2004; Korean yards maintained the largest orderbook globally from January 2000 to September 2008. At 1st July 2016, Chinese and Japanese yards’ shares of the orderbook stood at 37% and 22%, respectively, in CGT terms. In the year so far, Korea’s orderbook has fallen by 20% in CGT terms. Meanwhile, the Chinese and Japanese orderbooks have declined by 11% and 14% to 37.7m CGT and 22.1m CGT respectively. Against the backdrop of historically low contracting globally, many Korean yards have seen their orderbooks decline. 224 vessels of 6
Shipyards in Korea took market share from Chinese yards in 2011 South Korean yards took market share from Chinese yards in 2011 according to a recent report in the Danish Ship Finance Review. South Korea secured new orders of 13.5 million cgt Korean yards secured almost half of the contracted capacity (13.5 million cgt). Container and Tanker orders accounted for 85% (6 million cgt and 5 million cgt respectively). South Korea therefore maintains the position as the leading global builder of
The European Union on Wednesday blamed low prices offered by South Korean shipyards for the depression in the world shipbuilding market and accused Korea of pricing ships at below cost. A report by the EU's executive Commission found the world shipbuilding market continued to face serious difficulties. "Supply still outstrips demand and there are few indications that this situation may improve," the Commission said
European Union and South Korean trade officials will meet next week in Seoul to resolve a dispute over alleged shipbuilding subsidies by Korean yards. "Working-level officials from the EU and Korea will discuss the hottest trade issue between the two parties from May 28-30 in Seoul," said Seoul's Commerce Ministry in a statement. Earlier in the month, European Trade Commissioner Pascal Lamy met South Korean Commerce Minister Hwang Doo-Yun to discuss the EU executive's threat to start a
South Korean shipyards won shipbuilding orders of 4.2 million compensated gross tons (CGTs) during the first half of this year, down 36.9 percent from a year ago, the Commerce Ministry said on Wednesday. The orders in dollar terms amounted to $6.8 billion in the period, down 25.4 percent from the previous year, the ministry said in a statement. CGT shows a country's shipbuilding capacity and factors in manpower and added value.
Athens, Greece – Tsakos Energy Navigation Limited announced the order of one plus one state-of –the–art LNG carrier for delivery in the first quarter of 2015 at a major South Korean yard. The vessel is of the new tri-fuel design, enabling the ship to run on fuel oil, marine diesel/gas oil and natural gas, offering attractive alternatives to charterers. Discussions for long-term contracts have begun
UK's Martek Marine wins large orders for its MariNOx Evolution™ on-board emissions monitoring and engine efficiency system. The orders, amounting to more than US$1-million, are from Daewoo Shipbuilding & Marine Engineering and Hyundai Heavy Industries. Amongst the seven orders is the world’s largest and most complicated emissions monitoring system ever to measure SOx, NOx, CO2, CH4, NO2, THC, H2S, Benzene and N20.
Yonhap reported that South Korean shipyards have unparalleled competitiveness despite recent challenges posed by Chinese shipyards, industry and government sources said. The optimistic predictions come as alarm bells have been sounded over Chinese yards outpacing domestic companies in shipbuilding orders received in the first two months of this year. Such developments have caused some in China to boast that it can become the world's number one shipbuilding country by 2015.
Lloyd's Register’s teams in China and Korea have established a strong position in terms of ships ordered in 2010 which will be built to Lloyd’s Register class. Lloyd’s Register’s share of 2010 orders is, respectively, 29.6% in China and 28.3% in Korea.* While orders are from traditional areas of strength such as Greece, the continued expansion of shipowning in Asia is also driving demand.
STX Shipbuilding Co., the first South Korean yard in China, had its biggest two-day gain in more than a week in Seoul on optimism the purchase of a stake in Norway's Aker Yards ASA will add cruise liners to its range of vessels. STX Shipbuilding has more than quadrupled this year, making it the fourth-best performer in South Korea's Kospi 200 index. The stake purchase in Aker Yards will allow STX Shipbuilding to use the Norwegian company's expertise in cruise liners
A little-known investment company said it intends to order up to 20 liquefied natural gas (LNG) carriers, probably from South Korean shipbuilders. The contracts would be worth as much as $3.8 billion, two people with direct knowledge of the matter told Reuters.
COSCO Shipping Co. Ltd. (COSCOL) said it has been awarded a transportation and logistics contract signed by representatives of all parties on September 27, 2016 in Astana, Kazakhstan. Part of the work under the contract will be subcontracted to COSCOL’s Korean Partners
China lodges protest with Seoul over the incident. Three Chinese fishermen were killed on Thursday in a fire that broke out on their boat when South Korean coastguard men trying to apprehend them for illegal fishing threw flash grenades into a room they were hiding in
Italian shipbuilding giant Fincantieri SpA and Dutch counterpart Damen Shipyards Group are in the running to buy STX France, which has been put on the block by Korean debt-ridden parent STX Offshore & Shipbuilding Co, reports WSJ.
Rig firm Fred. Olsen Energy and South Korean yard Hyundai Heavy Industries settle dispute over construction of semi-submersible rig Bollsta Dolphin. Shares in Fred. Olsen Energy up 17 percent at 0736 GMT on the news, after rising 37 percent at the opening of the Oslo bourse
Tanker Opinions, published Poten & Partners says that, for a shipowner, there are usually a few twists to the traditional capital budgeting process. A shipowner that is deciding whether to invest in new capacity has at least three other factors to consider: (1) his
Alibra Shipping Research Weekly Market Report takes a look on current market scene of bulk carriers. For a little while now, the story has been “Now’s a great time to buy bulk carriers, asset prices are low…” We’re cautious of following the herd
Down the years, shipbuilders have always entered and exited the business as cycles have progressed, but over the past decade developments have been dramatic, says Clarksons Research. Back in 2007, 220 shipyards secured at least one order for a unit of 20,000 dwt or above in size
The first phase of a joint industry project (JIP) to promote a global standard for engineering and construction of offshore oil and gas installations has delivered four recommended practices (RPs). The outcome of the JIP, led by DNV GL, will be reduced complexity
1833 - The frigate Constitution is the first vessel to enter the newly-built dry dock at the Charlestown Navy Yard, Boston, Mass. for overhaul. A false rumor circulates in Boston in 1830 that the U.S. Navy intends to scrap the ship; young Oliver Wendell Holmes pens his poem "Old
1812 - During the War of 1812, Commodore John Rodgers leads a squadron onboard USS President off New York until she battles HMS Belvidera. The first shot of the War of 1812 is fired by USS President during this engagement. 1861 - During the Civil War
South Korean shipyard Sungdong Shipbuilding & Marine Engineering Co. (Sungdong) has won an order from Greece’s Tsakos Energy Navigation (TEN) for two 74,000 deadweight tonnage (DWT) crude-oil carriers with an option for two more.
Although many builder countries struggled to win new orders in 2015, yards in the Philippines, Vietnam and Taiwan managed to increase their combined share of global ordering to its highest level on record, says Clarksons Research.
As the downturn in the number of new vessel orders last year took hold, shipyards’ flexibility to switch sectors to take orders became a key factor in their ability to face up to an extremely challenging period, says Clarksons Research.
The global slump in the shipbuilding industry means that South Korea's ship yards have to look far and wide for new orders. Combined, the three major yards have only received one order in the first quarter of the year.